US Equity Markets declined last week in the face of renewed tariff threats from President Trump, though markets only fell modestly. The S&P 500 dropped 0.3% for the week and is now up 6.4% for the year. The Nasdaq ticked down 0.1% for the week to bring its gains for the year to 6.6%, while the Russell 2000 (small cap stocks) decreased 0.6% for the week and is now only up 0.2% for the year.
Global Equity Markets struggled as well last week given the uncertainty around tariffs. Developed Markets fell 0.3% for the week and are now up 16.8% for the year. Emerging Markets were down 0.2% for the week and are now up 14.3% for the year.
Interest Rates increased across the curve last week despite the tariff concerns as new Treasury supply hit the market. The yield on the US 10-Year Treasury closed at 4.42% last week vs. 4.35% the prior week. Investors still expect the Fed to cut rates by 0.50% before the end of the year.
Of Interest to Us
With corporate earnings reports beginning this week, forecasts are calling for growth of over 9% from a year ago. The average Q2 earnings growth over the last 10 years has been 6.9%. While companies have done a great job managing investor expectations, the projections feel a bit high given the slowdown in business that occurred when the initial tariffs were announced in early April.
Market Data
for the week ending 7/11/2025
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